US tariff will open avenues for India to focus on self-reliance, boost local production: Report

"While concerns persist regarding escalating costs, exchange rate volatility, and potential ramifications for exports, India can capitalize on trade tensions and fortify its domestic industries," the research stated. In recent years, the US has placed high taxes on Indian goods. In 2018, imports of steel valued at USD 761 million and aluminum valued at USD 382 million from India were subject to 25% and 10% tariffs, respectively.

Within a year, steel exports fell 46% as a result of these rising costs, which reduced the competitiveness of Indian goods in the US market. Indian companies lost money when American consumers chose less expensive options. The effect of trade tensions on India's rupee is another major worry. According to the research, 87% of India's crude oil imports are paid for in US dollars.